Strategy Formulation and Organizational Performance of State Corporations in Rwanda: A Case of Ultimate Developers Ltd

Abstract

This study examined the effects of strategy formulation on the organizational performance of Ultimate Developers Ltd (UDL), a State Corporate in Rwanda. The objectives included evaluating the influence of mission development, assessing the impact of environment scanning, and determining the effects of strategic options generation on UDL's performance. The study population consisted of 553 staff, clients, and stakeholders, with a sample size of 138 determined using Slovin's Formula. Primary and secondary data were utilized, and descriptive research design, correlation analysis, and multiple regression were employed for data analysis. The findings proved that Developing mission had a positive and significant relationship with service delivery (r=0.724 and sig=0.00<0.01), with operational efficiency (r=0.683 and sig=0.00<0.01), and Accountability (r= 0.622 and sig=0.00<0.01) at 1% level of significance. The multiple regression analysis proved that Developing mission has significance and positive effect on Organizational performance as indicated by β1= 0.172, p=0.009<0.05, t= 2.630. The implication is that an increase of one unit in developing mission would lead to an increase in Organizational performance by 0.172 units. The results of correlation analysis proved that Environment scanning had a positive and significant relationship with service delivery (r=0.701 and sig=0.00<0.01), with operational efficiency (r=0.663 and sig=0.00<0.01) and accountability (r= 0.626 and sig=0.00<0.01). The multiple regression analysis proved that Environment scanning has significance and positive effect on Organizational performance as shown by β2= 0.482, p=0.000<0.05, t= 9.318. This shows that when there is an increase of 1 unit in Environment scanning, this would lead to an increase in Organizational performance by 0.482 units. The results of correlation analysis revealed that Strategic Options Generation had positive and significant relationship with service delivery (r=0.712 and sig=0.00<0.01), with operational efficiency (r=0.674 and sig=0.00<0.01) and Accountability (r= 0.561 and sig=0.00<0.01). Strategic options generation has significance and positive effect on Organizational performance as indicated by β3= 0.455, p=0.000<0.05, t= 4.672. The implication is that an increase of one unit in Strategic options generation will increase Organizational performance by 0.455 units. Based on findings from the chapter, the study concluded that there is significant and positive relationship between Strategy formulation and organizational performance of UDL Ltd where 54.6% variation in organizational performance of UDL was due to changes in Strategy formulation measured in terms of Developing mission, Environment scanning and Strategic Options Generation. The findings also implied that the organizational performance of UDL Ltd has been measured in terms of service delivery, operational efficiency, and accountability. The study recommended that UDL Ltd has to improve its accountability to its stakeholders, which may improve its organizational performance. Keywords: Strategy Formulation, Organizational Performance, State Corporations, Ultimate Developers Ltd, Rwanda